1. Following are the financial information of Malgudi Co. for the year of 2021-2022. Balance sheet as on 31.03.2022 Assets 2021 2022 Liabilities and Equity 2021 2022 Plant and Machinery 50000 75000 Share Capital 80000 80000 Goodwill 30000 27000 Secured Loan 30000 45000 Preliminary expenses 7000 3500 Trade Payables 11000 0 Furniture 22000 0 Rent Payable 7500 4500 Inventory 6000 12000 Tax Payable 13000 15000 Trade Receivables 13000 17500 Retained Earning 1500 9500 Cash 8000 15000 Prepaid salary 7000 4000 Total 143000 154000 Total 143000 154000 Profit and loss account for the year ended 31st March 2022 Debit Amount Credit Amount To Opening Inventory 32000 By Closing Stock 25000 To Purchases 80000 By Sales 135000 To gross Profit c/d 48000 160000 160000 To Salary and wages 9000 By Gross Profit b/d 48000 To Rent 2500 By profit on sale of furniture 2000 To Depreciation on Plant and Machinery 5000 3000 To Amortization 3500 To Preliminary expenses written off 7000 To Interest 7000 To Taxes 13000 To Net Profit 50000 50000 Dividend Paid 5000
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Step 1: Calculate Net Profit Before Tax and Extraordinary Items Net Profit = 50000 Adjustments: - Add: Depreciation on Plant and Machinery = 5000 - Add: Amortization = 3000 - Add: Preliminary expenses written off = 3500 - Less: Profit on sale of furniture = Show more…
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Statement of cash flows Comparative information as at 30 June 2023 and 30 June 2024 for Declare Ltd is as follows. DECLARE LTD Comparative statements of financial position as at 30 June 2023 2024 Assets Cash at bank 62,000 43,000 Accounts receivable 76,000 84,500 Inventory 124,000 113,500 Land 62,500 25,000 Buildings 137,500 265,000 Accumulated depreciation — buildings (85,000) (100,000) Plant and equipment 40,000 40,000 Accumulated depreciation — plant and equipment (5,000) (10,000) 412,000 461,000 Liabilities and equity Accounts payable 60,500 67,000 Interest payable 750 250 Other expenses payable 8,750 3,000 Mortgage loan payable 45,000 66,250 Share capital 125,000 125,000 Retained earnings 172,000 199,500 412,000 461,000 Additional information 1. Gross profit for the year ended 30 June 2024 was $160,500 and consisted of the following. Sales 443,500 Cost of sales 283,000 2. Purchases of inventory for the year were $272,500. 3. All purchases and sales of inventories were on credit. 4. Profit for the year ended 30 June 2024 was $31,250, after deducting expenses of $129,250 from the gross profit figure. 5. Expenses of $129,250 include depreciation on buildings, and on plant and equipment, a loss on sale of land, and $5,000 in interest expense. 6. During the year ended 30 June 2024, cash dividends were paid. 7. Building extensions were paid for during the year, and a block of land, costing $37,500, was sold for $31,250 cash. 8. No plant was purchased or sold during the year. Required (a) Prepare the Statement of Cash Flows for Declare Ltd for the year ended 30 June 2024 using the direct method. (b) Complete T-accounts to show your workings for preparing the Statement of Cash Flows for Declare Ltd.
Akash M.
E11.11 Calculate cash provided by operating activities — direct method. LO3 The 2019 accounting records of Home and Away Travels Ltd reveal the following transactions and events. Payment of interest $ 21 000 Collection of accounts receivable $ 266 000 Cash sales 84 000 Payment of salaries and wages 95 200 Receipt of dividend revenue 19 600 Depreciation expense 22 400 Payment of income tax 22 400 Proceeds from sale of aircraft 1 136 800 Profit 53 200 Purchase of equipment for cash 30 800 Payment of accounts payable for Loss on sale of aircraft 4 200 inventory 140 000 Payment of dividends 19 600 Payment for land 103 600 Payment of operating expenses 28 000 Required Prepare the cash flows from the operating activities section of the statement of cash flows using the direct method. (Not all of the items will be used.)
Supreeta N.
1a. A company's Inventory balance at the end of the year was $198,800 and $212,000 at the beginning of the year. Its Accounts Payable balance at the end of the year was $96,000 and $90,800 at the beginning of the year, and its cost of goods sold for the year was $732,000. The company's total amount of cash payments for merchandise inventory during the year equals: a. $724,000 b. $732,000 c. $750,400 d. $713,600 e. $740,000 1b. Use the following information to calculate cash paid for income taxes during the year: Income tax expense $ 68,000 Income tax payable, January 1 16,600 Income tax payable, December 31 20,200 a. $68,000 b. $84,600 c. $31,200 d. $64,400 e. $88,200 1c. An examination of the company's income statement showed the following: net income, $125,000; depreciation expense, $35,500; and gain on sale of long-term plant assets, $9500. An examination of the company's current assets and current liabilities showed the following changes: accounts receivable decreased $10,500; merchandise inventory increased $23,500; prepaid expenses increased $7,300; accounts payable increased $4,500. Using the indirect method, calculate the net cash provided by or used by operating activities. a. $147,800 b. $154,600 c. $175,800 d. $149,800 e. $135,200
Madhur L.
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